John Templeton: A Life of Investing and Giving Back

John Templeton was a renowned American investor and philanthropist who made a lasting impact on the world of finance and beyond. He was born on November 29, 1912, in Winchester, Tennessee.

Templeton's early life was marked by a strong faith and a passion for learning. He was raised in a family of modest means and developed a keen interest in business and finance at a young age.

After graduating from Yale University in 1934, Templeton began his career in finance, working for several investment firms before founding his own company, Templeton Growth Limited, in 1954.

John Templeton started his Wall Street career in 1937 at Fenner & Beane, a firm that would eventually become Merrill Lynch.

He made a famous bet in 1939, borrowing $10,000 from his boss to buy shares in 104 stocks trading for less than $1, which turned into $40,000.

Templeton's investment strategy was to buy stocks in companies that were undervalued due to the impending war, and he was right, making money on all but 4 stocks.

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He held onto these stocks for an average of 4 years, demonstrating his patient and long-term approach to investing.

John Templeton became a billionaire by pioneering the use of globally diversified mutual funds, starting with his Templeton Growth Fund, Ltd. in 1954.

He created funds in specific industries such as nuclear energy, chemicals, and electronics, and by 1959, his company made an initial public offering with five funds and over $66 million under management.

John Templeton's investment philosophy was centered around buying low and selling high. He made a bold move in 1939 by purchasing 100 shares of each NYSE-listed company selling for less than $1 a share.

This strategy proved to be a wise decision, as Templeton made many times his money back when US industry picked up due to World War II. He instructed his broker to make the purchases the day World War II began.

Templeton's approach to investing was all about diversification. He pioneered the use of globally diversified mutual funds, which allowed him to spread risk and increase potential returns.

His Templeton Growth Fund, Ltd. was among the first American firms to invest in Japan starting in the mid-1960s. This move paid off, as it gave investors access to a previously untapped market.

Templeton's company made their initial public offering in 1959 with five funds and over 66 million dollars under management.

John Templeton was one of the most generous philanthropists in history, giving away over $1 billion to charitable causes.

He was named to the Time 100 list in 2007 as one of the world's 100 Most Influential People under the category of "Power Givers". Time cited his "pursuit of spiritual understanding, often through scientific research" through his establishment of the John Templeton Foundation.

Templeton established the Templeton Prize for Progress Toward Research or Discoveries about Spiritual Realities in 1972.

He also founded the Templeton Library in Sewanee, Tennessee, which houses his papers and a collection of literature concerning science and religion.

Templeton College of the University of Oxford was established by endowing the Oxford Centre for Management Studies in 1983, becoming a full college of the university by royal charter in 1995.

In 2008, Templeton College merged with Green College to form Green Templeton College.

Templeton was created a Knight Bachelor in 1987 for his philanthropic efforts.

Here are some notable philanthropic contributions:

The John Templeton Foundation is a significant part of John Templeton's legacy. It was established to encourage research into "big questions" by awarding philanthropic aid to institutions and people who pursue the answers to such questions.

Templeton's approach to theology was unique, as he remained open to the benefits and values of other faiths, and encouraged others to do the same. He believed that no human has yet grasped 1% of what can be known about spiritual realities.

The foundation's goal is to persuade people to use the same methods of science to discover spiritual realities. Templeton donated an additional $550 million to the foundation in 2004, a testament to his commitment to this cause.

Here are some key facts about the John Templeton Foundation:

Templeton's approach to philanthropy was characterized by his humility and willingness to learn from others. He believed that by remaining open to new ideas and perspectives, we can gain a deeper understanding of the world and our place in it.

John Templeton was a renowned investor and philanthropist. He was born on November 29, 1912, in Winchester, Tennessee.

Templeton's early life was marked by a strong Christian faith, which would later influence his investment philosophy. He studied at Yale University and later earned a PhD in economics from Oxford University.

Templeton's investment career began in the 1930s, and he quickly gained a reputation as a shrewd and successful investor. He founded the Templeton Growth Fund in 1954, which would go on to become one of the most successful mutual funds in history.

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Templeton's investment strategy was centered around the idea of "dollar-cost averaging", which involves investing a fixed amount of money at regular intervals, regardless of the market's performance. This approach helped him to avoid emotional decision-making and stay disciplined during market downturns.

Templeton's philanthropic efforts were equally impressive, with a focus on supporting Christian organizations and promoting financial literacy. He donated over $1.5 billion to charitable causes during his lifetime.

During the Depression of the 1930s, John Templeton made a bold investment move by instructing his broker to buy 100 shares of each NYSE-listed company selling for less than $1 a share.

This strategy helped him become a wealthy man, and it's a great example of thinking outside the box and being willing to take calculated risks.

Templeton's investment philosophy was guided by two key principles: avoiding communist nations and focusing on countries with lower inflation rates.

He believed that high inflation can have a detrimental impact on economic stability, and he was willing to put his money where his mouth was.

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By investing in countries like Japan, Templeton was ahead of the curve and recognized the potential of international markets.

In 1954, he established the Templeton Growth Fund, which laid the foundation for his distinctive investment approach and allowed him to invest in companies like Hitachi and Fuji Film.

Templeton's fund was among the first to invest in Japan, and he saw companies with potential that others dismissed as mere manufacturers of cheap imitations.

Japanese stocks were trading at an average PE of 4 compared to US stocks trading at PEs of 19, and they were growing faster too, making them a compelling investment opportunity.

By investing 60% of his fund in Japanese stocks, Templeton demonstrated his willingness to think differently and take calculated risks.